This blog publishes market news relating to the companies listed in Bursa Malaysia, as well as business news in general. You can search and find all the past market and business news by searching within this Blog.

Monday, September 19, 2011

Petronas to divest UK onshore production biz

KUALA LUMPUR: Petroliam Nasional Bhd is divesting the oil production business of its UK wholly subsidiary Star Energy Group Ltd and focus on optimising the Humbly Grove Gas Storage facility that would remain with the national oil company.

In a statement Monday, Sept 19, Petronas said it had entered into an agreement to sell Star Energy to IGas Energy plc, adding that Star Energy was expected to produce 2,800 barrels of oil equivalent per day.

Petronas said it had also entered into a long-term gas supply agreement with IGas Energy via its UK-based unit Petronas Energy Trading Ltd to offtake up to 150 billion cubic feet (bcf) of natural gas produced by IGas Energy.

'The transaction is in line with Petronas's strategy to focus on growing its European asset returns through marketing and trading.

'The company is already optimising all Humbly Grove gas storage capacity since April 2011 through its London Petronas Energy Trading subsidiary and is continuing to grow and diversify its European energy portfolio for enhanced returns and growth for the long-term,' it said.